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Anyone selling a house which is in neg equity and with NR?
papermoney
Posts: 583 Forumite
I have just has a call from NR about me selling my property for less than the mortgage. I thought it was going to be a big problem but it seems that I will just have to pay the shortfall (over 5 years) at their standard variable rate.
It seems too easy and I think I may be missing something.
Has anyone else been in a similar situation?
It seems too easy and I think I may be missing something.
Has anyone else been in a similar situation?
:rotfl:
0
Comments
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Needs a bump.
Had not heard of this. Have seen a couple, at least, of NR 100%+ situations.
Hopefully someone will notice...
First thoughts, any "early repayment charge" being added to the debt?
Any other fees?Hi, we've noticed that you don't have a signature to remove. If you're not sure why please read the forum rules or email the forum team if you are feeling left out.0 -
Most of the NR 100%+ cases were actually 90% secured loan on mortgage and 20-25% unsecured loan so it may be possible to pay off the secured bit and carry on with the unsecured bit.
My recollection was that if you tried to do this the unsecured loan skyrocketed in interest rate (+8%?), but maybe since they have been nationalised they are being more reasonable?RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
Richard_Webster wrote: »Most of the NR 100%+ cases were actually 90% secured loan on mortgage and 20-25% unsecured loan so it may be possible to pay off the secured bit and carry on with the unsecured bit.
My recollection was that if you tried to do this the unsecured loan skyrocketed in interest rate (+8%?), but maybe since they have been nationalised they are being more reasonable?
It still is 8% my idea is to pay the unsecured part off and enter an agreement with NR for the remainder.
The early redemption is also included in the loan.:rotfl:0 -
papermoney wrote: »It still is 8% my idea is to pay the unsecured part off and enter an agreement with NR for the remainder.
The early redemption is also included in the loan.
They basically take the discharge of mortgage fee, early redemption fee, and any help with costs that you may have had, add that the amount remaining to pay on the mortgage and then subtract that from the final selling cost.
The unsecured loan bit is dealt with entirely separate.It's not easy having a good time. Even smiling makes my face ache.0 -
Wickedkitten wrote: »They basically take the discharge of mortgage fee, early redemption fee, and any help with costs that you may have had, add that the amount remaining to pay on the mortgage and then subtract that from the final selling cost.
The unsecured loan bit is dealt with entirely separate.
Thanks - i understood that bit from their letter. The reason im going to pay off the unsecured loan is because it will be at nearly 13% so i'm better to pay that off than pay that amount off the actual mortgage as that will at their current variable rate.:rotfl:0
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